MotoGP, Countermand: KTM in receivership

Despite all assurances and one day after the announcement that Pierer Industrie would rescue itself from its serious economic problems through a new EU restructuring procedure, a new piece of bad news comes from Mattighofen in Austria. Pierer Mobility AG is preparing restructuring proceedings with receivership for its subsidiary KTM. This means that the motorcycle manufacturer with the brands KTM, Husqvarna, GASGAS and 50.1 percent of MV Agusta Motor, which is in severe financial difficulties, is taking refuge in creditor protection.

“The financing requirements of KTM AG currently amount to a high three-digit million amount,” the Austrian company announced in a press release on Tuesday. “The management now does not assume that it will be possible to secure the necessary interim financing on time.”

Net debt stands at 1.5 billion euros and, according to media reports, the Group is sitting on an inventory of 100,000 unsold motorcycles. 

The company's management has therefore decided to file an application for the initiation of judicial reorganization proceedings with receivership, Pierer announced. The proceedings provide the opportunity to continue to manage the assets under supervision and to independently restructure the KTM Group. All other subsidiaries of KTM AG, in particular all sales companies, are not affected by this.

“The aim of the proceedings is to agree a restructuring plan with the creditors within 90 days,” Pierer wrote. "Redimensioning the group should not only secure the continued existence of the KTM Group in the long term, but also create the basis for emerging stronger from the proceedings.”

Following the announcement, Pierer shares were suspended from trading on the SIX Swiss Exchange. Trading is to be resumed at a later date, SIX announced. Most recently, the Pierer Mobility share fell by a double-digit 16.48 percent to EUR 11.40 in Vienna trading.